Why Seller Disclosure Requirements Catch Many Homeowners Off Guard
Seller disclosure obligations catch many homeowners off guard, particularly those selling without a full-service listing agent. In British Columbia, a seller is not handed a single checklist at the start of a transaction and told to fill it in.
The disclosure obligations come from several sources: common law, the standard Contract of Purchase and Sale, the Property Disclosure Statement, municipal permit records, and, for strata properties, the Strata Property Act. Understanding each one before you list your home reduces the risk of a deal collapsing, a deposit dispute, or a legal claim after closing.
The Common Law Duty to Disclose Latent Defects
Before any forms are involved, seller disclosure obligations begin with a common law duty that applies to every property transaction regardless of whether a PDS is completed. Sellers are legally required to disclose all known latent defects. These are hidden defects that are not discoverable through a reasonable inspection and could pose serious risks to health or safety.
A latent defect is one that would not be found by a buyer conducting an ordinary visual inspection or hiring a home inspector. Examples include a recurring drainage problem in a crawlspace that only surfaces after heavy rain, a history of mould remediation behind finished walls, or a structural repair that was covered before the home was listed. If you know about a problem that a buyer would not be able to see, you are obligated to disclose it. This duty applies whether or not you complete a Property Disclosure Statement.
Patent defects, which are visible and can be discovered by inspection and ordinary vigilance, are not legally required to be disclosed, as the buyer can observe these issues themselves. A visibly deteriorated deck or an aging roof that any inspector would note falls into this category. Seller disclosure obligations focus on what is hidden, not on what is obvious.
The Property Disclosure Statement
The Property Disclosure Statement, commonly abbreviated as PDS, is a multi-page form produced by the BC Real Estate Association that asks a seller a series of yes, no, or do not know questions about the condition of their property. Although not legally required, it is widely used in residential real estate transactions and covers various aspects of the property, including structural integrity, water damage, infestations, renovations, and compliance with local bylaws.
While completing the PDS is not mandated by statute, a 2025 BC Court of Appeal decision has changed the legal landscape significantly. In Sewell v. Abadian, the BC Court of Appeal held that crossing out a Property Disclosure Statement can amount to misrepresentation. The court interpreted a struck-out PDS as a representation that the seller had no knowledge regarding the items in the form. If the seller does, in fact, have relevant knowledge about unpermitted work or defects and fails to disclose it, they may still be held liable.
In response to this ruling, the BC Real Estate Association released new disclosure forms, including a Property No-Disclosure Statement, which recognizes the change in approach by the court. A for sale by owner seller who chooses not to complete the standard PDS should now use the formal Property No-Disclosure Statement rather than simply striking through the original form.
When completing the PDS, answer each question based only on what you actually know. A seller who misrepresents or omits known defects may face legal action for breach of contract or fraudulent misrepresentation. If a question asks about a system you have never had reason to inspect, the correct answer is do not know, not no.
Unpermitted Work and Permit History
One of the most significant practical disclosure issues for home sellers in Surrey, Langley, Burnaby, and Vancouver involves renovations completed without municipal building permits. The PDS asks directly whether any work was done without the required permits from the local municipality. Unpermitted work can create serious problems with insurance, financing, or even your ability to sell the home.
If a basement suite, additional bedroom, garage conversion, or structural alteration was completed without permits during your ownership, this must be declared. If the unpermitted work was done by a previous owner and you are aware of it, it must also be declared. A buyer whose financing falls through because a lender’s appraiser flags an unregistered suite, or who later discovers a municipality requires the work to be torn out or brought up to code, has a strong basis to pursue the seller for non-disclosure.
Sellers who discover unpermitted work before listing have three options: apply for a retroactive permit, remove the work, or disclose it on the PDS and adjust the asking price accordingly. A real estate lawyer or notary can advise on which approach suits your situation.
Disclosure for Strata Properties
A seller in a strata property has an additional layer of seller disclosure obligations that do not apply to freehold homes. When selling a condo or townhouse in a strata corporation, the seller is responsible for requesting a Form B: Information Certificate from the strata corporation.
The Form B discloses information about a strata lot and the strata corporation. The strata corporation is required to provide the Form B within seven days of a request. It certifies key details including monthly fees, outstanding debts, reserve funds, unresolved disputes, parking and storage allocations, and insurance summaries.
As a seller, you should request the Form B as early as possible, since delays in receiving it can hold up subject removal for a buyer whose offer is conditional on reviewing strata documents. The Form B must be accompanied by attachments including the strata’s current budget, the most recent depreciation report, and details of any legal proceedings, arbitration, or tribunal matters.
A strata seller is also responsible for declaring any outstanding strata levies or fines against their lot. If a special levy has been approved but not yet collected, this must be disclosed. Buyers who discover an undisclosed levy after closing regularly pursue the seller through the BC Civil Resolution Tribunal.
The Title Search
Before listing, a for sale by owner seller in BC should order a title search through the Land Title and Survey Authority of BC to confirm what is registered on title. Easements, rights-of-way, covenants, and any registered charges that a buyer will inherit must be disclosed.
Many sellers are unaware of easements granted to utility providers or restrictive covenants placed on the property at subdivision that affect how the land can be used. These are discoverable through the title search, and a buyer whose lawyer or notary finds them will expect them to have been disclosed.
A title search in BC costs approximately $10 and can be completed online. For a for sale by owner seller, reviewing the title before listing is one of the simplest ways to avoid complications later.
Stigmatized Properties
In BC, seller disclosure obligations have no legal requirement to disclose stigmatization unless directly asked by the buyer. A stigmatized property is one where an event such as a violent crime or death occurred on the premises. If a buyer asks directly whether such an event took place, the seller is obligated to answer honestly.
If no one asks, the seller is not required to volunteer the information. This is one area where the advice of a real estate lawyer before listing can clarify your obligations based on the specific history of the property.
Getting the Disclosure Right Before You List
For a for sale by owner seller, completing disclosure documents without professional support is manageable if approached carefully. Read each question on the PDS slowly and answer only from your own direct knowledge. For anything you are genuinely uncertain about, consult the permit history at your municipal building department.
For strata properties, request the Form B and related documents as soon as you decide to sell. Review your title at the LTSA before the listing goes live.
At OneFlatFee, the flat fee MLS listing service includes an in-person consultation with a licensed realtor who can walk through the disclosure documents with you before your property goes on the market. For more detailed legal advice on your specific situation, a BC real estate lawyer or notary is the appropriate resource. You can also review BCFSA disclosure obligations for sellers on the BC Financial Services Authority website.